Tuesday, October 11, 2011

Feds' Ongoing Crackdown On Upfront Fee Loan Modification Ripoffs Leads To Shutdown Of Two More Rackets

From the Federal Trade Commission:

  • At the Federal Trade Commission’s request, a U.S. district court has shut down two related operations as a result of settlements with defendants who allegedly failed to provide promised debt relief services and jeopardized their clients’ privacy by tossing their personal information into unsecured dumpsters. In addition, one of the operations allegedly charged consumers a $1,495 up-front fee based on phony promises that they would get mortgage relief assistance.

  • The settlements with Residential Relief Foundation, LLC; Silver Lining Services, LLC; Mitigation America, LLC; and their principal owners are part of the FTC’s ongoing crackdown on scams that target consumers in financial distress. The settlements ban the defendants from working in the mortgage assistance and debt relief business, prohibit them from the alleged privacy violations, and impose judgments totaling more than $11 million – the amount of consumer harm they caused.

For the FTC press release, see At FTC’s Request, Court Shuts Down Deceptive Mortgage and Debt Relief Operation (One Firm Charged $1,495 for Loan Modification Program, but Provided No Services).

See Federal Trade Commission v. Residential Relief Foundation, Inc., et al. for links to the lawsuit and the Stipulated Final Orders for Permanent Injunction and Settlement of Claims.

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